Core Viewpoint - The United Arab Emirates has enacted a new central bank law that integrates digital assets and decentralized finance (DeFi) into traditional banking regulations, positioning the country as a global financial innovation hub [1]. Regulatory Framework - The new law, enacted in September and made public recently, imposes fines for unlicensed operations up to 1 billion dinars ($272 million) and mandates that all crypto and blockchain organizations operating in or from the UAE must be licensed by the Central Bank of the UAE (CBUAE) [2]. - Federal Decree Law No. 6 of 2025 introduces comprehensive reforms that bring virtual assets, DeFi protocols, stablecoins, tokenized real-world assets, decentralized exchanges, wallets, bridges, and all supporting blockchain infrastructure under the authority of the central bank [3]. Innovation and Compliance - The law aims to foster innovation by providing a 60-day licensing decision process, risk-based capital rules, and a one-year grace period (until September 2026) for existing players to achieve compliance [4]. - New licensable categories include virtual asset payments, open finance, and digital wallets, with enhanced fraud protections and fast-track dispute resolution for amounts up to AED 100,000, creating opportunities for Islamic DeFi and tokenized Sukuk [5]. Global Positioning - While Europe is still rolling out its Markets in Crypto-Assets (MiCA) regulation, the UAE has established one of the most comprehensive national frameworks that treats digital assets as a core component of the financial system [6].

Core Viewpoint - The investment strategy involves rotating out of overvalued AI and technology stocks into sectors that are seen as undervalued but still related to technology, such as utilities and emerging markets [4][5][10]. Group 1: AI and Technology Trends - The belief is that there are still years of growth potential in AI and related technologies, including cybersecurity and digital assets [2][3]. - AI is expected to complement other technologies and enhance daily life, indicating a long-term trend rather than a short-term spike [3]. Group 2: Sector Rotation Strategy - In August, the company reduced exposure to communication services due to perceived overvaluation and shifted investments into utilities, which have a lower price-to-earnings (PE) ratio [4]. - By the end of October, a similar strategy was applied to information technology, with funds redirected towards emerging markets, particularly in chip and hardware manufacturing [5]. Group 3: Investment Approaches - Investors are encouraged to either seek undervalued fundamental stories in these sectors or consider ETFs and mutual funds that track these trends [7]. - A small allocation to a diversified basket of emerging markets is suggested as a way to capitalize on growth similar to the tech sector's rise in the U.S. [8]. Group 4: Current Market Dynamics - There has been a rotation away from technology stocks towards more defensive sectors, with consumer stocks performing well recently [10]. - Healthcare stocks have also seen significant attention, and the strategy involves adjusting allocations back to market weight while favoring utilities, industrials, and financials [11]. Group 5: Financial Sector Insights - Financials are viewed as an attractive investment due to expectations of falling short-term interest rates while longer-term rates remain stable or increase, benefiting banks [12][14]. - The expansion of technology companies through debt is also seen as a potential opportunity within the financial sector, providing diversification away from a heavy reliance on technology [15].

Core Insights - Klarna, a Swedish fintech firm, announced the launch of a U.S. dollar-backed stablecoin, indicating a significant move into digital assets by a major payments company as regulatory scrutiny increases [1] Company Summary - Klarna is expanding its product offerings by introducing a stablecoin, which aligns with the growing trend among payment companies to explore digital asset solutions [1] Industry Summary - The move by Klarna reflects a broader industry shift towards digital assets, particularly as regulatory frameworks become more stringent, prompting companies to adapt and innovate in the payments space [1]

We recently talked about how institutional players in Wall Street is getting really more bullish on crypto than ever before. And I feel like a lot of the recent events, especially at Ripple Swell, we kind of saw that increased bullish view on crypto from some of the biggest names in finance. Recently I saw a post from Rhys Merrick who is a Ripple employee and he said full circle moment for me at Ripple Swell a couple of weeks ago.7 years ago when I joined Ripple I remember meeting with large financial insti ...

Summary of Key Takeaways from Hong Kong Financial Tour Industry Overview - **Industry**: Hong Kong Financials - **Key Players**: Local banks, non-bank financial institutions, Futu Holdings, Hong Kong Exchanges & Clearing (HKEX), Standard Chartered Plc (STAN) Core Insights 1. **Revenue Growth Visibility**: There is improving revenue growth visibility for Hong Kong banks, driven by robust deposit growth and resilient HIBOR, with non-interest income (NII) growth being a significant factor [1][2] 2. **Wealth Management Performance**: The wealth management business has become a key driver for non-NII growth, with management confident about the outlook for 2026 despite a high base in 2025 [1][2] 3. **China CRE Risks**: Banks noted a resurgence of risks related to China’s commercial real estate (CRE), with some banks indicating that additional provisions may be necessary if cash flows deteriorate further [5][6] 4. **Mixed Views on HK CRE Market**: The Hong Kong CRE market shows a mixed picture; while the residential segment is recovering, the office sector remains under pressure due to high vacancy rates [5][6] 5. **Digital Asset Strategies**: There is a wide spectrum of strategies among banks regarding digital assets, with STAN having a comprehensive footprint in stablecoins and the broader crypto ecosystem [1][7] Additional Insights 1. **Loan and Deposit Growth**: Loan growth remains subdued, particularly in wholesale banking, but deposit growth offers upside to NII. Retail lending, especially mortgages, is expected to see continued momentum [7] 2. **Cost Discipline**: Banks are prioritizing cost discipline, targeting efficiency improvements, and reinvesting savings into technology and front-office services [7] 3. **Regulatory Clarity for Digital Assets**: Increased regulatory clarity is expected to accelerate digital asset development in Hong Kong, with banks adopting different strategies [7] 4. **HKEX Meeting Takeaways**: The meeting with HKEX yielded mixed results; while robust market sentiment is expected to drive EPS growth, new initiatives in derivatives are unlikely to be significant revenue drivers in the near term [10] 5. **Futu Holdings Outlook**: Positive takeaways from Futu indicate robust growth in key overseas markets, with no new regulatory guidance affecting existing Chinese Mainland clients [10] Valuation and Market Sentiment - **Market Sentiment**: Overall positive sentiment towards Hong Kong banks, with STAN as the top pick in the sector. Potential stablecoin licensing in HK and UK deregulation could serve as tailwinds [1][7] - **Valuation Table**: A detailed valuation table of HK banks and non-bank financials was provided, indicating various price targets and ratings for companies like Futu, HKEX, and STAN [9][11] This summary encapsulates the key points from the Hong Kong financial tour, highlighting the current landscape, growth drivers, and potential risks within the sector.

Core Insights - The U.S. administration is actively working to establish the country as the "crypto capital of the world" through legislative efforts and the formation of a working group on digital asset markets [1][2] - The GENIUS Act has been passed, creating the first federal framework for stablecoins, which mandates issuers to maintain dollar-for-dollar reserves and undergo audits [4][5] - The Clarity Act is being pursued to clarify regulatory authority over digital assets, aiming to provide predictability for the market [6] Industry Context - The previous administration's hostility towards digital assets has shifted, allowing for a more favorable environment for crypto integration into the financial mainstream [2] - A history of conflicting regulations has led to scams and hesitance from traditional financial institutions to adopt cryptocurrencies, despite recognition of blockchain's potential [3] - Industry leaders are advocating for regulation, understanding that federal oversight is essential for transforming cryptocurrencies into reliable payment instruments [5]

Core Insights - Peter Brandt, a veteran trader since 1975, has made significant predictions in the crypto market, including a notable forecast of Bitcoin's price drop below $4,000 in 2018 [1][2] - Currently, Bitcoin is experiencing a major downturn, having recently peaked above $123,000 and now struggling to maintain a price above $90,000 [3] - Brandt has identified a bearish pattern in Bitcoin's price movement, suggesting a potential further decline [4] Price Analysis - Brandt's recent analysis indicates a breakdown in Bitcoin's price, characterized by a series of "lower highs" following a minor breakout [4] - He has identified a "broadening top" pattern, which typically signals a bearish trend, suggesting that Bitcoin may continue to decline [4] - The next price targets for Bitcoin, according to Brandt, are $81,000 and $58,000 [5]

Core Insights - The IRS is proposing new rules requiring U.S. taxpayers to report and pay taxes on foreign crypto accounts, modeled after existing frameworks for offshore bank accounts [2][3] - The proposal aims to increase visibility and compliance for U.S. taxpayers holding crypto with foreign entities, which could include various offshore exchanges and custodians [2][5] - The impact of this change will primarily affect a specific group of crypto taxpayers who have not been fully compliant with existing tax regulations [6] Regulatory Changes - The new IRS proposal is part of a broader effort by the Treasury to impose reporting obligations on "digital asset accounts" held abroad, with a deliberately broad definition of foreign accounts [2] - The implementation of the proposed rules is expected to discourage U.S. taxpayers from moving their digital assets to offshore exchanges, promoting the growth of digital assets within the U.S. [3] Taxpayer Cohorts - There are four identified cohorts of crypto taxpayers in the U.S., with the new rules primarily impacting those who have been skirting tax obligations [6] - The cohorts include those who report all transactions, those who only report gains when cashing out, those who do not report at all, and those without taxable gains [7]

Summary of Standard Chartered Conference Call (November 19, 2025) Company Overview - **Company**: Standard Chartered (SEHK: 02888) - **CFO**: Diego, who joined in January 2024 - **Stock Performance**: Stock price increased by approximately 150% since Diego's appointment, outperforming the SX7P index which rose by 110% [1][2][3] Key Business Segments and Performance Wealth Management - **Wealth Management Growth**: Significant growth driven by the rise of the middle class in Asia and increasing sophistication of investors [5][6] - **Record Net New Money**: Attracted $15 billion in Q2 and $13 billion in Q3, with a year-to-date growth of 15% in net new money flows and 25% growth in wealth income [7][10] - **Target for Affluent Net New Money**: Aiming for $200 billion over five years, averaging $10 billion per quarter [12] - **Investment in Wealth Management**: Plans to invest $1.5 billion, focusing on hiring relationship managers and enhancing technology [13] Cross-Border Income - **Growth Rate**: Achieved a 9% CAGR in cross-border income since 2019 [19] - **Competitive Advantage**: Strong network presence in ASEAN and Africa, with a focus on capital flows rather than trade [16][18] Financial Markets Business - **Risk Management Focus**: 70% of the markets business is dedicated to risk management, growing at 10% per annum [21][23] - **Integration with Banking**: The flow business is consistent and programmatic, while episodic business varies with market conditions [24] Strategic Insights - **Market Positioning**: Standard Chartered is focused on affluent customers ($1 million-$10 million), which are cheaper to acquire and serve, leading to high loyalty [9] - **Response to Market Volatility**: The bank has shown resilience during volatile times, with strong performance in both banking and markets businesses [26][27] - **Digital Assets Strategy**: Actively involved in digital banking and assets, including stablecoins and tokenized deposits, positioning itself as a central player in the digital asset revolution [35][36] Regional Focus and Turnaround Strategies - **UAE as a Growth Hub**: The UAE has become the third-largest wealth management hub for Standard Chartered, with a focus on attracting high-net-worth individuals [46][47] - **Korea and India**: Plans to pivot towards wealth management in Korea and India, with new wealth centers established [48][49][50] Financial Performance and Projections - **Return on Tangible Equity (ROTE)**: Achieved ROTE target for 2026 ahead of schedule, with projections for continued growth [28][29] - **Cost Management**: The "Fit for Growth" program aims to optimize costs while supporting growth, with a focus on maintaining a cost-conscious approach [62][63] Risks and Challenges - **Market Recession Impact**: A potential market recession could negatively affect wealth management performance, but the bank remains optimistic about its diversified clientele [75][77] Conclusion - **Outlook**: Standard Chartered is well-positioned for future growth, with a strong focus on wealth management, digital assets, and cross-border income, while maintaining a disciplined approach to cost management and capital allocation [80][81]

Group 1 - LevelField has filed an application to acquire Burling Bank for approximately $70 million, with Burling having $209.5 million in assets and a single branch [3][4] - The new entity will be named LevelField Bank, maintaining Burling's community banking operations while expanding into digital asset services, including deposit accounts, loans, and custody services [4][5] - LevelField aims to become the first full-service chartered bank in the U.S. to offer both traditional banking and digital asset services on a single platform [5][6] Group 2 - LevelField plans to hire around 100 employees by 2026 to support the needs of its digital asset user base, primarily in customer service roles [6] - The company intends to raise $112.5 million post-acquisition to fund the purchase, growth capital, and retained earnings [6][7] - LevelField has received conditional approval from the Illinois Department of Financial and Professional Regulation for the acquisition, pending final approval from the Federal Reserve [7]